Employee turnover is a key business challenge for many organizations. Turnover can cost organizations anywhere from 16% to 213% of a lost employee's salary.

Our research shows that organizations committed to addressing employee turnover are more likely to engage and retain employees.

In other words, organizations that gather feedback from exiting employees will be ahead of the game. They can use that data to take action to keep existing talent motivated and engaged.

But there are different types of employee turnover. Employee turnover doesn't only happen when an employee decides to leave. There are many possibilities that may lead to an employee's exit.

Employee Turnover Definition

What is employee turnover?

Definition: Employee turnover is the rate at which employees leave an organization over a set period, then get replaced. It is usually shown as a percentage of average headcount. It covers every exit, whether the employee chose to go or the organization made that choice.

Turnover tells you how stable your workforce is. A single number can hide a lot, so the story behind it matters more than the figure itself.

What counts as turnover

Turnover includes any permanent departure from your organization. That means resignations, retirements, terminations, and layoffs.

It does not usually include temporary leave, such as parental leave or a sabbatical. Seasonal or contract roles that end as planned are often tracked separately.

Voluntary and involuntary exits

Voluntary turnover starts with the employee. Involuntary turnover starts with the organization. Each has different causes, and each needs a different response.

Healthy and unhealthy turnover

Not every exit is a problem. Some turnover is expected and even helpful, like a retirement that makes room for new talent.

The real concern is undesirable turnover. That is when strong performers leave for reasons you could have prevented.

Why it matters

Every exit affects more than one seat. Teams lose knowledge, managers lose time, and the people who stay often take on extra work.

Hiring and training a replacement also takes effort and budget. Tracking turnover helps you see these costs before they grow.

Turnover vs. retention

Turnover and retention are two sides of the same coin. Turnover measures who leaves. Retention measures who stays.

Looking at both gives you a fuller picture of employee experience.

4 Types of Employee Turnover

1. Voluntary Turnover

No organization is immune from voluntary turnover. People will decide it's time for a change and are likely to leave at some point. But it is possible to reduce your voluntary turnover rate.

Chances are, you already have exit surveys in place for voluntary turnover. If not, start here!

Surveying employees who choose to leave your organization will provide invaluable insights on how to move forward. Use this data to understand:

• Why an employee left
• What you could have done about it
• The impact their loss will have on the organization

You'll want to keep a special eye on your undesirable turnover. This is when you lose top performers for preventable reasons.

2. Involuntary Turnover

Involuntary turnover is when the company asks an employee to leave. This could be due to:

• Poor performance
• Behavioral issues
• Changing business needs
• Budget cuts
• Structural reorganization/reductions in force

Most will assume that an employer makes this decision–and that the employee never wanted to leave. But with involuntary turnover, there is always two sides to the story.

Use your turnover data to confirm that the organization made a fair decision—and that the employee will not suffer from the loss.

3. Retirement

People tend to say exits due to retirement are inevitable and out of the company’s control. However, surveys show that some employees become disengaged and choose to retire early. They might decided to exit your organization, but keep on with their career.

Create an exit survey targeted to retirees. This will help you understand their unique needs and challenges. You'll be able to identify ways to engage and retain older, more tenured employees.

Retiree feedback can help make your workplace better, so you can keep new employees for the long haul.

4. Internal Transfers

Internal transfers involve employees taking new positions within the same organization. This type of employee turnover can be a sign of healthy movement. But there may be other intentions behind an employee's cross-team move.

Exit surveys can help paint a better picture of why an employee transferred. It could be because they were interested in a new role or a growth opportunity. Or it could be that they are running from a bad manager, distrust in coworkers, or lack of growth.

This type of survey data can help you understand what is working as whole, and where individual teams could improve. When on employee leaves a team or department, there's an opportunity for managers to ensure that those left behind remain engaged.

Voluntary vs. involuntary turnover at a glance

Voluntary turnover happens when an employee chooses to leave. Involuntary turnover happens when the organization makes that choice.

The table below shows the common types in each category, and what to look at when you analyze them.

Some organizations count internal transfers and retirements as their own categories. Track them in whatever way fits your reporting, as long as you track them consistently.

What are the causes of employee turnover?

Employee turnover has two sets of causes. Voluntary exits usually trace back to the employee experience. Involuntary exits usually trace back to performance, behavior, or business change.

Knowing which cause sits behind each exit helps you act on the right problem. Most causes are easier to address early than after someone has already left.

The causes of voluntary employee turnover

People rarely leave over one thing. They leave when several small frustrations add up and nothing changes. These are the causes that show up most often.

• Limited growth and career paths. Employees want to see where they can go next. When the path is unclear, they look elsewhere.
• A strained relationship with their manager. Managers shape daily experience more than almost anything else. Infrequent feedback and weak 1-on-1s push people away.
• Too little recognition. People want to know their work matters. When contributions go unnoticed, loyalty fades.
• Pay and benefits that feel out of step. Compensation is rarely the only reason, but it can be the tipping point.
• Burnout and heavy workloads. Sustained pressure without support wears people down. Flexibility and balance matter here.
• Weak connection to culture and purpose. Employees who do not feel heard or included are quicker to leave.
• Low engagement. Disengagement often comes first. It is an early warning sign that someone may already be thinking about leaving.

The hardest part is that many of these causes stay hidden until the resignation arrives. That is why surveys, feedback, and regular check-ins matter so much.

The causes of involuntary employee turnover

Involuntary turnover is often painful for everyone involved. Analyzing it helps you confirm decisions were fair and spot problems you can fix upstream.

• Ongoing performance gaps. Unclear goals, limited coaching, or a poor role fit can all contribute. Clear expectations and regular feedback help prevent this.
• Conduct or policy violations. These include serious breaches and repeated issues. Look for patterns by team or manager.
• Attendance and reliability concerns. These can signal disengagement or personal challenges that were never addressed.
• Budget cuts and restructuring. Business shifts can eliminate roles even when people perform well. These exits often affect those who stay.
• Skills mismatch. Needs change over time. Without development, an employee's skills can fall behind what the role requires.
• Hiring and onboarding gaps. A poor fit at the start, or a weak first 90 days, can lead to an early exit.

Many involuntary exits can be prevented. Better hiring, clearer goals, and consistent coaching all lower the risk.

How Quantum Workplace helps you improve turnover rates

Quantum Workplace helps you spot turnover risk early, then act on it. It connects engagement, performance, development, and recognition in one platform, so you see the full picture of why people stay or go.

You don't have to start from scratch. Here is how each part supports retention.

• Employee Engagement: Collect survey and feedback data to see what fuels or drains your teams. Text analytics surface themes from open comments.
• Retention Radar: Use flight risk predictions to see which groups are most likely to leave. Review topics of concern, then use suggested actions and the action library to build a targeted plan.
• Performance Management: Give managers goals, reviews, and 1-on-1s in one place. Clear expectations and regular coaching help prevent performance-related exits.
• Employee Development: Build career paths and growth plans so people can see their future with you. This helps you grow future leaders from within.
• Recognition: Celebrate meaningful contributions as they happen. Employees who feel valued are more likely to stay.
• Top talent risk detection: Layer in talent reviews, succession planning, and performance data to protect your high performers and leadership pipeline.

Turnover is easier to change when you see it coming. With the right insight and a clear next step, managers can act before a resignation lands.

Ready to see where your risk sits? Request a demo to see how Quantum Workplace can help you keep the people who matter most. You can also read our research on the predictors of turnover for a deeper look at what drives people to leave.

It's important to analyze every type of employee turnover in your organization. But identifying, understanding, and preventing turnover isn't easy. For more tips download our latest research Top 5 Predictors of Employee Turnover.